The USD JPY strengthened for a second day as traders turned a little more optimistic about a U.S. economic recovery. Traders are looking for a slight improvement in the U.S. jobs market this Friday. This is helping to support the idea that while the U.S. economy may not be boosting a strong uptrend, it is most likely building a stronger support base. According to a Bloomberg survey, the U.S. may have added 140,000 jobs and the unemployment rate may have eased to 9.7 from 9.8. Yesterday’s ISM Factory Index report showed a slight improvement and leading investors to feel a little better about the economy in 2011. Buyers stepped into the USD JPY after the market pierced the 81.00 level and held the November bottom at 80.24. Based on the main range of 84.51 to 80.92, traders are now looking for a retracement to 82.71 to 83.14. Although the main trend on the daily chart is still down, the GBP USD rallied on data that showed British mortgage approvals unexpectedly rose and before a favorable manufacturing report. Currently the British Pound is making a recovery of the short-term range of 1.5911 to 1.5345. The first upside target is a retracement zone at 1.5628 to 1.5695. The bigger picture is suggesting that the market may continue its correction to 1.5822 to 1.5935. The USD CAD continues to remain under pressure because of the strength in the oil market. The Canadian Dollar finished close to a 2 ½ year high and is expected to continue to rise as global demand for crude oil is expected to sent this market to $100 over the near-term.

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